Updating Our Income Stocks Ford Motor Co., H.J. Heinz Co., Bank Of America, The Stanley Works and Windstream Corp.

Article Excerpt

FORD MOTOR CO. $8 is taking steps to survive today’s disastrous car market. It cut its dividend in half (but it still yields 2.5%), and it is cutting production by 20%. Ford could raise cash by selling assets such as its luxury brands. When the car market improves, Ford’s high sales (now around $95 a share) provide a lot of leverage for improved earnings. That’s why we see it as a hold. H.J. HEINZ CO. $41 seems to have fended off a proxy challenge from billionaire investor Nelson Peltz. That will make it easier for Heinz to implement its own restructuring plan, but ongoing pressure from Peltz should continue to push the stock higher. Buy. BANK OF AMERICA $52 has raised its dividend 12.0%, from $2.00 a share to $2.24. It now yields 4.3%. Best Buy. THE STANLEY WORKS $47 has increased its quarterly dividend 3.4%, from $0.29 a share to $0.30. The new rate of $1.20 a year yields 2.6%. Buy. WINDSTREAM CORP…

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